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How to Create Drop-Ship Sales
and Purchase Orders
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SAP Business One
2005A SP01
May 2006
SAP Business One 2005A SP01
How to Create Drop-Ship Sales and Purchase Orders
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How to Create Drop-Ship Sales and Purchase Orders
Contents
How to Create Drop-Ship Sales and Purchase Orders ................................................................................ 4
Purpose.......................................................................................................................................................... 4
Drop Ship Warehouses.................................................................................................................................. 5
Defining a Drop Ship Warehouse .................................................................................................................. 5
Creating Drop Ship Sales and Purchase Orders ........................................................................................... 6
Copyright.......................................................................................................................................................... 7
© SAP AG 2006
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How to Create Drop-Ship Sales and Purchase Orders
How to Create Drop-Ship Sales and Purchase Orders
Purpose
This document enhances the information found in SAP Business One online help.
Please see SAP Business One online help for the comprehensive documentation.
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How to Create Drop-Ship Sales and Purchase Orders
Drop Ship Warehouses
Use
Drop shipping is when you ship a product directly from your vendor to your customer without holding the
inventory in your warehouses.
To work with drop ship in SAP Business One you must create a drop ship warehouse.
A drop-ship warehouse does not actually contain items; It is a "virtual" warehouse for goods shipped directly
from your vendors to your customers, since the moment the goods "enter" the drop-ship warehouse you ship
them to your customer.
The system does not record any inventory postings when you use drop-ship warehouses in documents.
When you work with a perpetual inventory system, journal entries created by documents in which drop-ship
warehouses are used does not reflect the inventory value of the items received or released from a drop-ship
warehouse.
When you select a drop-ship warehouse in sales orders, the system opens a purchase order immediately for
ordering the goods from one of your vendors.
Defining a Drop Ship Warehouse
Use
Define at least one warehouse as Drop Ship.
Procedure
To define a warehouse as Drop Ship:
1. From the Main Menu, choose Administration → Setup → Inventory → Warehouses.
2. In the Warehouses – Setup window, choose the General tab and select Drop Ship.
You cannot change the setting of the Drop Ship checkbox after a warehouse is recorded in an
existing document.
© SAP AG 2006
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How to Create Drop-Ship Sales and Purchase Orders
Creating Drop Ship Sales and Purchase Orders
Use
When you select a drop-ship warehouse in a Sales Order document, the system assumes that you
immediately need to process a Purchase Order for the ordered goods.
Prerequisites
You have defined a drop-ship warehouse.
Procedure
1. From the SAP Business One Main Menu choose Sales − A/R → Sales Order.
2. Select a drop ship warehouse for one or more of the ordered items.
3. On the Logistics tab, select the Purchase Orders checkbox.
4. Choose Add.
The Sales Order is added and the Purchase Order Confirmation window opens.
The Purchase Order Confirmation window displays items for which you selected a drop ship
warehouse in the Sales Order.
Every update you make to an existing Sales Order launches the Purchase Order Confirmation
window, displaying item rows which were not yet copied to a Purchase Order.
When you select an item defined as a BOM in a Sales Order, the Purchase Order Confirmation
window displays the bill of materials' child items. This applies only to a Sales BOM.
5. Make the required actions in the Purchase Order Confirmation window.
See SAP Business One online help for details about creating a Purchase Order from the
Purchase Order Confirmation window.
6. Choose Add.
Result
A Purchase Order is created.
© SAP AG 2006
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